Overwhelming debt can make you feel like you’re on a sinking ship. For some, when they decide to take action and file for bankruptcy, it can be tempting to go all in, adding costly mistakes to an already difficult situation. If you’re considering filing for bankruptcy, there are several steps you can take to smooth the way and there are also a few very important actions to avoid. Pond Law Firm is here to share the five most important things to avoid before filing for bankruptcy so that the bankruptcy process is as successful, simple, and straightforward as possible.
There are many do’s and don’ts when filing for bankruptcy of any kind. Here are the top things to avoid before filing a bankruptcy claim in Ridgeland, MS.
Avoid Misrepresenting Assets and Debts
Transparency is key for filing bankruptcy. Do not try to hide assets or ignore debts. It’s vital to provide accurate information about your entire financial situation. Failure to do so can lead to penalties or legal action for bankruptcy fraud, the dismissal of your claim, or a loss of discharge.
Avoid Transferring Assets
When you’re preparing to file for bankruptcy, transferring assets like property for less than it’s worth, or transferring assets to friends or family may seem like a good idea at first glance. However, these can be costly mistakes, as the courts may see these actions as fraudulent and it could put your entire bankruptcy claim at risk.
Avoid Incurring New Debts
It’s vitally important to avoid taking on new debt before filing. Some people figure it’s all going to go away anyway, so they purchase luxury items or rack up credit cards. Spending high amounts on credit or taking cash advances raises red flags for the courts and puts your claim at risk.
Avoid Liquidating Your Retirement
Before taking any action, contact a local bankruptcy lawyer in Ridgeland, MS. Actions like liquidating your retirement to pay the debt off may seem like a good idea but 401(k)s and IRAs are protected assets in bankruptcy claims. Cashing out means you lose this protection and the money could then be subject to the creditor’s claims.
Avoid Skipping the Services of a Bankruptcy Lawyer
Bankruptcy is a complex and tricky endeavor and trying to go it alone can wreak even more havoc on your financial life. The best thing you can do for a successful outcome is to use the help of a professional. A local Ridgeland, MS bankruptcy lawyer can make all the difference in protecting any assets possible and ensuring a smooth bankruptcy process. Any reputable bankruptcy law firm will actually end up saving you money in the end, all while helping you understand all your options and avoid any costly mistakes. For instance, they can advise when the best time is to file and ensure all paperwork is filled out and filed correctly.
Seeking the services of Pond Law Firm bankruptcy attorneys in Ridgeland, Mississippi guarantees you’ll avoid these costly mistakes. With experienced legal support from the beginning, you’ll take all the proper steps to ensure a smooth bankruptcy process and avoid risky actions that could put your entire claim in jeopardy. Plus, our support with your claim doesn’t end there. We provide financial counseling services for years to come, helping you rebuild a strong financial future. Contact Pond Law Firm for a reliable and experienced Ridgeland, Mississippi bankruptcy attorney today!